AI Credit Default Insurance Costs Surge as Investors Assess Data Centre Debt Risks

The cost of protecting against defaults by major US technology companies has risen sharply, reflecting growing investor concerns about debt levels, financing requirements and the potential returns from large-scale artificial intelligence infrastructure investments. Credit default swap (CDS) spreads for several companies involved in AI development and data centre expansion have reached record levels, according to data from S&P Global Market Intelligence and LSEG.